QSR

Restaurant Brands is expected to report Q3 2026 earnings on October 29 with consensus EPS of $1.18 (up 14.6% YoY) and revenues of $2.53 billion (up 3.4% YoY). The company has a positive Earnings ESP of +8.88% with a Zacks Rank #3, suggesting a likely earnings beat. The stock has beaten consensus estimates in all four of the last quarters.

McDonald's is ramping up its value proposition to compete with rivals for price-conscious consumers, but execution issues with its Every Day Affordable Price (EDAP) offering contributed to roughly two-thirds of Q2 traffic shortfalls. While the company maintains competitive pricing advantages and a strong loyalty ecosystem, July comparable sales turned slightly negative, indicating the turnaround will take time. Competitors like Burger King and Wendy's are also intensifying their value strategies.

Burger King is outperforming McDonald's in the fast-food sector, with same-store sales growth of 8.5% versus McDonald's 0.8% in Q2 2026. Burger King's turnaround strategy focuses on simplifying operations and emphasizing core products like the Whopper, while McDonald's NEXT initiative adds menu complexity. The analyst recommends Restaurant Brands International stock over McDonald's, citing Burger King's more effective execution.

McDonald's U.S. comparable sales rose only 0.8% in Q2 2026, missing expectations due to underperforming FIFA campaign, low awareness of its under-$3 menu, and reduced digital offers. The company plans to refocus marketing on personalized digital offers and value meals. Meanwhile, Burger King outperformed with 8.5% comparable sales growth through focused Whopper campaigns, while Wendy's struggled with a 7% U.S. sales decline and plans to shift away from frequent promotions.

Wendy's stock has plummeted to near 52-week lows, trading around $6.44, as the fast-food chain faces its sixth consecutive quarter of declining same-store sales (down 7% in Q2 2026) and traffic (down 12.5%). New CEO Bob Wright, who previously led a turnaround at Potbelly's, is expected to unveil a comeback strategy in early November. Consumers cite declining quality, service, and value as reasons for choosing competitors like Burger King, which has seen sales growth.